Impact of COVID-19 on Tourism and Hotel Management Industries

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3 years ago
Topics: COVID-19, Tourism, Impact

As the cases of affected patients by Covid-19 increase, economic rates of tourism and business decreases. Job activities are limited as well as the interaction outside. Tourism and Hospitality are sectors greatly affected by this ongoing crisis. Not only is the society crippled, but also the organizations in the country.

COVID-19 marks the greatest crisis for the tourism industry. International tourist arrivals dropped by 72 percent in January-October 2020 compared to the same timeframe last 2019, owing to sluggish virus containment, low traveler morale, and significant travel restrictions still in place due to the COVID-19 pandemic, according to the latest issue of the UNWTO World Tourism Barometer. Between January and October 2020, arrivals in Asia and the Pacific fell by 82 percent. This ten-month period saw a 73 percent decline in the Middle East and a 69 percent drop-in Africa. International arrivals dropped by 68 percent in both Europe and the Americas. In 2020, the expected fall in foreign tourism will equate to a loss of around 1 billion visitors and US$ 1.1 trillion in tourism receipts. This drop in international tourism could result in a global economic loss of more than US$ 2 trillion in 2019, accounting for more than 2% of global GDP (W.H.O., 2020).

Due to this phenomenon, tourism management’s adaptation capacity in every country is challenged. Safety and hygiene protocols are strictly implemented. Wear of face mask and face shield is advised, as well as using alcohol and soap that kills germs and bacteria. Trips outside are prohibited, only short tours are allowed. Only OFWs are allowed to go overseas, with proper submission of safety and health requirements. Limited personnel only are allowed inside an airport. Tourists are suggested to stay indoors for a couple of days or are quarantined to guarantee the safety of everyone.

The pandemic additionally impacts the hotel industry due to lockdown, canceled bookings, travel ban, social distancing, and job loss. More than 50% of reservations were shut down in every part of the world. This resulted to profit fluctuation since the demand declines but they still need to pay for the fees for services, salaries of the employees, and other expenses. According to the study of Solomon (2020), the bookings in Ethiopia’s hotel have fallen to 43% and the room expenditures decreased to 30.5%. Moreover, the World Travel and Tourism Council (WTTC) addressed the issue of surpassing 50 million jobs that might be jeopardized because of this pandemic.

The hotel management must organize respective plans – during and after the occurrence of COVID-19. Primarily, they should always consider the safety of their employees and customers

at all times. Constantly sanitizing the whole area will let them feel at ease. Some hotels are promoting innovation such as providing 24/7 medical coverage to their guests. Soria (2020), CEO of Cohosting provided several strategies tackling the flexibility, hospitality, and security of every hotel. They are keeping a close eye on the publicity strategies used by the major hotels to deal with the new standard brought on by COVID-19. The massive use of technology can be used to market the hotels and thus limiting the contagious effect of COVID-19. Several hotels – big or small, maybe on huge loss right now, but adapting to the new normal and constantly providing strategies can turn this misery into opportunity.

Tourism and hotel management industries are vital factors for the country’s economic growth. But as the crisis of COVID-19 begun last 2019, these sectors were greatly hit by the pandemic. The impacts to both industries are severe thus counter-measures are provided by the government agencies to prevent any further damage.

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3 years ago
Topics: COVID-19, Tourism, Impact

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